Transforming the Western Power Grid

The document evaluates the transition to a western RTO, arguing it could streamline clean energy deployment, improve grid reliability, and reduce costs, while warning of risks regarding California's Renewables Portfolio Standard, gas plant retirements, and governance shifts.

• A western RTO could accelerate the clean energy transition by coordinating regional transmission planning, which is more cost-effective than local solutions. California specifically requires an estimated $30.5 billion for transmission build-out over the next 20 years to meet its goals, with about one-third of that investment needed for lines connecting out-of-state wind resources.
• Regionalization could improve grid reliability by reducing the total capacity required to meet needs. By 2030, it is estimated that California utilities would need 1.6–1.7 GW less capacity, while the entire West could see a reduction of 4.3–11.9 GW.
• The formation of a western RTO is projected to reduce overall grid costs. Annual benefits for California by 2030 are estimated between $500 million (from efficient dispatch and reduced capacity) and $1.5 billion (including reduced procurement costs and management charges).
• Expanding to an RTO poses a risk to California's Renewables Portfolio Standard (RPS). Because out-of-state renewable power delivered anywhere in the RTO would likely become eligible under current rules, the incentive for in-state projects could decrease, potentially maintaining reliance on in-state gas power plants.
• Transitioning to a western RTO would require a new governance structure, removing the current system where the California governor appoints the CAISO board. This shift to independent governance could limit the state's ability to oversee policy outcomes and potentially allow industry-driven changes that hinder the clean energy transition.
• California faces the risk of being left behind as other western entities organize independently. The Southwest Power Pool (SPP) has already approved full RTO expansion into the Western Interconnection, and states like Colorado and Nevada have laws requiring utilities to join an RTO by 2030.

APA

Union of Concerned Scientists (2023). Transforming the Western Power Grid. https://www.ucs.org/sites/default/files/2023-03/grid-regionalization-policy-brief.pdf

Chicago

Union of Concerned Scientists. Transforming the Western Power Grid. 2023. https://www.ucs.org/sites/default/files/2023-03/grid-regionalization-policy-brief.pdf.

Wikipedia

{{cite report |author=Union of Concerned Scientists |title=Transforming the Western Power Grid |date=March 2023 |url=https://www.ucs.org/sites/default/files/2023-03/grid-regionalization-policy-brief.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{unionofconcernedscientists2023transforming, author = {{Union of Concerned Scientists}}, title = {{Transforming the Western Power Grid}}, institution = {Union of Concerned Scientists}, year = {2023}, month = mar, url = {https://www.ucs.org/sites/default/files/2023-03/grid-regionalization-policy-brief.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }